Thai Iguyen S0uthern Luz0n Siale University SOcialist University Pepuplic Of Tepublic 0f Vietnam Philippines FAcT0TS AFEEcTIIG ThE AD0PTI0H 0E E-c0MMETcE MODEL DEVEL0PED F0L SMALL AIID MEDIUM EIHTTEILPITSES IH viel nam A Dissertati0n Presented 10 the Faculty 0f Graduate Sch001 SOuthern Luz0n State University, The Philippines and Thai Iguyen University, SOcialist Pepunlic Of Vielnam In Partial Fulfillment Of the Tequirements fOr the Degree D0ct0r in Management by HGUVEH TIEI HUNG - FAT SLSU-DBA 6A (han0i) May 2013 Asstract E-cOmmerce cam be an impOrtant sOurce Of cOmpetitive advantage fOr mOst business OrgamizalOns, especially small and medium enterprise sized (SMEs). This study examines the factOrs that influence e-cOmmerce adOplOn in Vietnam SMEs. by studying the ecCOmmerce mOdel advantage and SMES" Teadiness t0 AdOpt, this study pr0pOsed and validated a predictive mOdel. Devel0ped fr0m the techn0l0gy acceptance mOdel and Other relevant researches im the area, the authOr identified six factOrs that influence electrOnic cOmmerce adOptiOn in VietIIam as f0llOws: capacity Of the firm 10 start e-cOmmerce adOptiOn; cOmpatisility Of e-cOmmerce 10 the value, wOrk practices, and techn0l0gy at the firm; influence Of managers On e-cOmmerce adOptiOn; effect Of the ease Of use On e-cOmmerce adOptiOn; effect Of the usefulness On e-cOmmerce adOptiOn; and effect Of effectiveness On e-cOmmerce adOphOn.
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73 LIST 0E TABLES Table 4.1: DescripHive analysis 0f the respÖIId€TIÏS.3: Firms utilizing e-cCOmmerce and firms having a website crOsstabulatiOn.4: KMO amd Bartlett's Test.5: I'0†aled cOmpOnerI† IMaÏTIX .7: I0†aled cOmpOnerI† MaÏTIX .9: Iem-T0†al S†aHHisÌCs.- - vn TH HH TH HH HH I1) S)0389))3)0 0Õ 5 1 .18: Ommibus Tests 0f MOdel cOeffiCIe11Ìs.- 5 5 5c 25+ *++*‡+s£+ss+eeeseess iv Table 4.20: classificaiOn Table LIST OF FIGUTE Ij005928 Đi c20i 81031101117. -- - 6 c2 2111 E1 21 91 91911 1 1 1v ng ghe Figure 2.6: Schematics Of the theOry Of reasOned acHOH (TT A) .7: Acceplance M0del TAM (Davis 1989) .9: The c0mm0On characlerishcs Of IT inmOvahOn that influence intended .10: Pr0p0sed Elecir0mic cOmmerce AdOphi0n M0del fOr Small- and „40110000 v/298501)i20U08L15 011018.11: Pr0p0sed m0del fÓr assessing e-cOmmerce success II SME:.2 business areas and firm ulilize e-cÖmme€TC€. -5- 5+5 ss+x+sx+s£+xzsx> Figure 4.3: IIumber 0f the firms have ITIl€TTIeÌ. 5 65+ +vE+tEeerekeeerersereeree Figure 4.4:I'esearch m0del affer faclOT aI1aÏVS1S.- 5+ 2c sssvsereereeeesrrseree vi chAPTEL 1 IHTT0DUcTIOIT FOr recent decades, Inf0rmali0n lechn010gy (TT) has been changing the w0rld by significantly cOntributing 10 fasten the glOsalizaliOn pr0cess in which all cOmpetitOrs cOme 10 have equal OppOrtunities in a flattened wOrld as well as creating areal revOlutiOn in every field Of science and life.
The applicatiOn Of IT in prOductiOn and business is m0t Out Of this trend either. The cOncept Of IT applicatiOn in cOmmercial activities, alsO knOwn as e-cOmmerce, came imt0 the wOrld and becOme a new trend. E-cOmmerce has been gradually replacing the Old ways Of dOing business because Of its vari0usprOminent advamtages, such as faster buying/selling prOcedure, lOwered OperaliOnal cOsts , mOre cOnvenience fOr custOmers 10 place Orders, increased efficiency with unlimited space amd time prOperties, etc. hOwever, fOr develOping cOuntries in general and fOr Vietnam in particular, e- cOmmerce is a relatively new thing althOugh the devel0pment Of this trend have peer taking place in bOth width and depth.
It has m0t actually beer cCOmpleted fOr this area im State management. The applicaliOn in the enterprises as well as in the agencies and OrgamizatiOns is alsO at explOrative level, 10 suppOrt the traditiOnal business fOrm Or 10 cOmpine these twO fOrms with each Other. In fact, many enterprises have applied ard develOped e-cOmmerce and sOme Of them have becOme g00d mOdels in this area such as VIETGO, a pricing jOint stOck 1 cOmpany with e-cOmmerce page www.cOm; and PeaceOft sOlutiOn cOmpany with wessite www.Despite its increased pOpularity, the explOitatiOn and applicatiOn Of e-cOmmerce are always tw0 sides Of a prOblem: Firstly, we are In a lransiHOnal per10d fr0m traditiOnal business 10 e-cOmmerce business melh0d, sO it is necessary i0 always make pragmalic and shOrt-term cOmparisOn Of the efficiency between these twO methOds. SecOndly, there alsO requires a different and mOre intellectual way Of 100king at e-cOmmerce.
In Order 10 successfully apply and devel0p e-cOmmerce, it is required that negative aspects such as a fraudulence, distrust ard sabOtage, etc. are limited by raising public awareness, devel0ping firms" pOlicy, executing management Of ecOmmerce.These things, hOwever, have been difficult 10 cOntr0l because Of the fast, pOwerful and high-tech characteristics Of e-cOmmerce. The devel0pment Of e-cOmmerce has happened in the same manner as the develOpment Of traditiOnal cOmmerce, im which the first step was unprOmpted as each individual, COmpamy, agency Or 0rgamizaH0n realized its internal benefits then it Became mOre advanced and mulhf0rm. h0wever, 10 expand and devel0p 11 10 a high level as well as 10 create real benefits fOr sOciely, it needs an interventiOn Of “State hand” fr0m the angle that these entities can 101 Or dO 101 want 10 dO.
FOr the ab0ve reas0ns, there is a questiOn 10 pOmder hOw dO we devel0p and manage e-cOmmerce im Order 10 minimize the negativity and make Optimal use Of the pOsitivity, amd 10 successfully prOm0te high efficiency 10 the sOciety, the cCOmmunity, and each individual? 1. backgr0und Of the Study Tt can n0† be denied that benefits achieved by e-cOmmerce have a great impact 10 the develOpment Of a natiOn“s ecOnOmy. Many devel0ped cOuntries in the wOrld, 3 amOng which United S†ales was the firsl, have crealed fav0rasle c0ndiHOns fOr e- cOmmerce i0 be devel0ped, leading human seing in achiving great business results. AlthOugh there are mary pr0slems needed t0 be sOlved in the applicatiOn Of e- cOmmerce, the develOped cOumtries, realizing its huge advartages, has quickly eml0yed and devel0ped e-cOmmerce with the expectatiOn Of achieving the fOundatiOn fOr digital ecCOnOmy.
Internet is changing the lifestyle and the way Of wOrking. Internet creates g00d cOnditiOns fOr everyOne, frOm university researchers atid students in big cities 10 peOple in rem0te mOuntainOus areas , im which everyOne have the OppOrtunity 10 access the same endless infOrmatiOn resOurces. MOreOver, Internet als0 pr0vides means Of COmmunicatiOn fOr peOple Or places 10 carry Out transactOns at ary time. Enterprises with different scales all can COmmunicate 10 their partners and custOmers via Internet.
Online activities help them quickly get necessary infOrmatiOn, thereby imprOving the quality Of prOducts ard services with 10w cOst. The GOvernment Of Vieltam has placed special emphasis On develOping e- cOmmerce amd assigned the Ministry Of cOmmerce 10 be the clue agency wh0 is respOnsible fOr examining and cOnstructing the prOjects Of e-cOmmerce devel0pment in Vietnam. Om 22/11/2001, the center Of PrOmOting SOftware Devel0pment, directly under Department Of Vietttam Trade and Industry, Opened the first training cOurse mamed ‘“E-cOmmerce fOr business” that was held free in DOng Ilai with the purp0se Of helping enterprises step by step appr0ach e-cOmmerce and serve busimess aclivities On Internet. Since am initial applicatiOn Of e-cOmmerce still faces a number Of difficulties, it 1s essenHal 10 create real pOwer, which cOmes fr0m the infrastructure fOr e- cOmmerce, strategy 10 devel0p e-cOmmerce business im small and medium enterprises, gOvernment suppOrt, ard awareness Of business e-cOmmerce applicatiOns in business.
The imtelligerttsia needs 10 meet the requirements Of specialty, and the cultural standards Of the peOple als0 need t0 be gradually imprOved, especially fOr yOung peOple, One Of the main fOrces helping 10 depl0y e-cOmmerce. AccOrding 10 figures frOm the Ministry Of Industry and cOmmerce, at present, small ard medium enterprises accOunt fOr mOre than 85% Of enterprises in Vietnam, with registered capital Of mearly 2,313,857 pilli0n d0ngs (equivalent 10 121 silli0n d0llars) and 100% having Internet access. While mOre and mOre cusiOmers are 100king fOr mew prOducts and trade OppOrtunities with SOutheast Asian cOumtries, Vietnamese enterprises are alsO seeking mew OppOrtunities 10 reach them thr0ugh e- cOmmerce. AlOng with maintaining dOmestic OperatiOns actively, Vietnam will definitely cOntinue 10 receive mOre attentiOns frOm impOrters in a near future (Mr Vincent WOng, SeniOr Managing DirectOr Of business DevelOpment and custOmer Services Department Of GrOup Alivava.
In 2012, Vietnam AssOcialiOn Of E-cOmmerce (VEcOM) cOnstructed the E- Business Index im Order 10 suppOrt agencies, OrgamizaiOns and enterprises evaluating quickly the applicatiOn Of e-cOmmerce On a mahOmal scale as well as in each prOvince and central city. E-business Index, abbreviated 10 EbI, helps agencies, OrganizahOns and enterprises 10 evaluate quickly the degree Of ecOmmerce applicaliOn and 10 cOmpare the devel0pments by the years in each 1Ocality, cOncurremtly suppOrt 10 an assessment and cOmparisOn between the l0calities based On a system Of index. SO im Vietnam 10day there is Only VEcOM which cOnstructed the EbI 10 assess a degree Of e-cOmmerce applicatiOn in the enterprises and hOme OrgamizatiOns. but this is Only statistical and investigative index that reflects a degree Of e-cOmmerce applicaiOn annually, it can mn0t bring Out an index that helps enterprises identifying whether the abilities Of their Own enterprises can apply e-cOmmerce Or n0t; hOw 10 invest and which pr0slems needed 10 be sOlved.
10 apply e-cOmmerce 10 business. Stalement Of the Pr0blems This research prOject fOcuses On the adOplOn Of e-cOmmerce in Viet Tam SMEs and aims 10 test adOptiOn factOrs in e-cOmmerce mOdel which it built based On the m0dels Of effective e-cOmmerce in the wOrld. AuthOrs pr0p0se a mOdel that factOrs are based On the actual situatiOn Of e-cOmmerce in the viet mam enterprises. Thus the research pr0slem fOr this study can be as fOllOws: What are the main fact0rs, which influence the ad0p1i0n Of e-cOmmerce in Viet nam SMEs? Thus the research pr0blem fOr this study cam be as f0llOws: h1.
capacity Of firm affects e-cCOmmerce ad0pli0n h2. cOmpatisility Of e-cOmmerce fOr the value, wOrk practices, and techn010gy in the firm affects e-cOmmerce adOptiOn h3. Managers influence e-cOmmerce ad0phOn h4. The ease Of use affects e-cCOmmerce adOphOn h5.
The usefulness affects e-cOmmerce adOphOn h6. Effectiveness affects e-cOmmerce adOptiOn 1. Significance Of the Study - This study cam serve small arid medium enterprises in Viettam. - This research will suppOrt the enterprises in cOnstructing business strategies, strengthening advertising, and imprOving cOmpetitive advantages in the market 10 ec0n0my and in the inlegraH0n 0£ Vielriam 10day 10 the w0rld ecOn0my.
- This study cam prOvide necessary infOrmatOn and suppOrt the GOvernment"'s pr0grams in f0rmulaling pOlicies and laws On e-cOmmerce applied fOr businesses in Vietnam. - Tesearchers cam use this study as a reference fOr further research related 10 this issue. Sc0pe and Limilali0n The sludy shall f0cus 0n delermiming the e-cOmmerce siralegy thai might help small and medium enterprises Iimpr0ve the prOduchOn, sales and pr0fii 0f the cOmpany. - ScOpe: Mainly research On the small and medium enterprises (SMES) in Vietnam.
- The f0rms Of Ownership and types Of enterprises: The enterprises Of all fOrms Of Ownership atid business types, except fOr the enterprises with 100% fOreign capital. - The geOgraphical limits: the research fOcuses Om the enterprises in han0i. This representative meet the requirement and capacity fOr applying e-cOmmerce in pariicular and IT im general at the highest level in Viet Tam. 11 chAPTEL H TEVIEW 0F LFELA TED LITETFA TUI'E 2.